According to a recent study by London & Country, first time buyers will soon have to save up to 60% more for their home deposit.
The mortgage broker found that an average first time buyer deposit will reach £80,000 during the next 10 years. The average deposit today is £51,821, but figures produced by L & C Mortgages indicate that by 2027, an average deposit will have reached £81,468.
London first time buyers can expect to save even more, as first time buyer deposits in the Capital are expected to soar by 75% to £244,842. David Hollingworth, from L & C Mortgages, states that the biggest challenge for first time buyers will continue to be saving for a deposit on a home. He added that parents will play a huge role in helping their children to buy their first property.
One of the main factors behind the predictions is the continuing of rising property prices. As house prices continue to increase, so does the deposit required to buy a home. The broker has estimated that first time buyers will need to save 28% of a property’s value as a deposit. First time buyers in London will be most affected, followed by buyers in Brighton and Hove. The group looked at 17 cities across the UK, and deposits are forecast to rise by a minimum of 40% in all of them.
The most affordable city in the UK will be Liverpool, as an average deposit is predicted to be £30,716. First time buyers will benefit during the next decade from the advice of CeMAP qualified mortgage advisors.
